Morpho has transitioned from an Aave-based optimizer to an independent open lending network with the launch of Morpho V2. Initially launched in 2021, Morpho introduced a peer-to-peer matching mechanism to minimize interest rate spreads. By 2023, it expanded with Morpho Blue, a modular lending framework, and MetaMorpho, a vault system for fund management across multiple markets. In 2025, Morpho V2 introduced intent-based lending, enabling users to set custom borrowing and lending terms. Despite minor security incidents, Morpho's design isolates risks within individual markets, ensuring system stability. The platform now competes with Aave, Spark, and Ajna by offering a balanced approach to modularity, transparency, and market-driven interest rates.